From mboxrd@z Thu Jan  1 00:00:00 1970
From: Yasushi SHOJI <yashi@atmark-techno.com>
Subject: Re: inserting new heading
Date: Mon, 19 May 2014 01:55:30 +0900
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At Thu, 15 May 2014 10:01:11 -0400,
Ralph Bacolod wrote:
> 
> I recently found the joy of using Emacs and Org-mode. I'm using it to organize a lot of stuff and just
> now I notice something that bothers me a lot. Whenever I am inserting a new heading, via Ctrl-return or alt-return , the
> new heading skips a line. Is this the default behavior? If yes, is there a variable that I can change somewhere?

(setq org-blank-before-new-entry '((heading . nil) (plain-list-item . auto)))

does the above line work for you?
-- 
          yashi